Japan Reaches a Keynesian Cul-de-Sac

Japan hurtles toward fiscal cliff as money printing can't make up for an economy's decrepitude.

The calendar read April 1, but instead of a day of pranks, Tuesday was the day Japan goes over its own fiscal cliff. So says Carl Weinberg, chief economist at High Frequency Economics.

That's because Japan imposed a massive increase its national sales tax, to 8% from 5%, on April 1, which is the first day of the fiscal year there. But instead of April Fool's Day, it might better be called the Japanese version of Groundhog Day.